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MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Ford Asia: Facility Decision in Gujarat
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Ford history
1. Headquarter: Michigan
2. Manufacturers of cars , SUVs and Trucks.
3. Began operation in 1903.
4. Model T car.
5. International office in Paris.
6. 61% in USA , 33%in Europe, 5% in rest world.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
8. Early losses in 2001 due to Korean and japan brands.
9. Entry of Allan Mulley from Boeing to Ford for turnaround.
10.Aston Martin, and Jaguar sold to Tatas.
11. Sold Volvo to Geely.
12. Reduced stake in Mazda.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
14. Focus on fiesta, Fusion, Mondeo and cross overs.
15. Focus shifted to small and fuel efficient vehicles.
16. Thought of Manufacturing outside USA
17. Reduced Plant from 20 to 8.
18.No of models reduced to 24 from 97.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
19.Number of suppliers are reduced to 750 from 3300.
20. As models decreased components can be manufactured in Non USA location.
21. Sale of domestic assets.
22. Negotiation with labour to reduce wages.
23. Ford become profitable in 2009 and reduced the no of workers to 1.9 lakh.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Ford Asia
1. Growth comes from china and India.
2. Manufacturing in china and Thailand.
3. Engine plant in china in 2009.
4. Ford figo from chennai plant in 2011.
5. Plans for sanand plant began.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Service parts business.
1. 70% of auto company comes from services in sales.
2. Outsourcing of auto components.
3. E- coating process.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Service parts manufacturing
1. Import from australia.
2. Separate paint shop in Chennai.
3. Asian countries are different compare to US and Europe.
4. Problems of coating in Thailand.
5. SVAP problems in Gujarat due to different automobile standards in the world.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Car industry in India.
1. Strong domestic growth.
2. Manesar, Pune and chennai.
3. 5% growth.
4. Gujaraat as new destination.
5. New private ports.
6. Issues of strikes in Gujarat.
7. 600 acres land allotted in Sanand.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Options
1. Outsource e- coating in sanand to third party.
2. TARR do not work for outsourcing.
3. Outsource in Chennai and transport part to Sanand.( 1800 km, 13 days, fleet, inventory, poor infrastructure, $3.5 billion)
4. Build a stand alone facility( service, export,
